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The City of Manchester, New Hampshire, has a fiscal year ending December $31,$ Year $5.$ The city council is the highest level of decision$-$making authority for the government. For the two following independent items, indicate whether the statement is true or false. If false, explain why.

$"1.$ On December $30,$ Year $5,$ the city spends $$900,000$ on a sidewalk project that is not a special assessment. On the Year $5$ financial statements, a reconciliation is presented that starts

with a total change in fund balances for the governmental funds and works down to end with the total change in net position for governmental activities. As a result of this acquisition,

this $$900,000$ must be subtracted as part of this reconciliation."

$"2.$ Assume that the city issues $30-$day revenue anticipation notes on December $30,$ Year $5,$ to finance the government until it collects new taxes. These notes are issued at their face value

of $$500,000.$ On the Year $5$ financial statements, a reconciliation is presented that starts with the total change in fund balances for the governmental funds and works down to end

with the total change in the new position for the governmental activities. As a result of the note issuance, this $$500,000$ must be subtracted as part of this reconciliation. $"$

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